The Nikkei index has seen a slight fall from its highs and the yen has reversed its trend lower. Household spending has collapsed and inflation is back.
I thought the QE scheme was based on the idea that if you can get inflation higher, consumers will spend? I guess this relationship is a little more difficult to untangle when you have tax hikes, cuts in government expenditures, and an uncertain demographic future. The liquidity increase was a jolt but does not change the underlying structure. The economy needs for therapy.
I thought the QE scheme was based on the idea that if you can get inflation higher, consumers will spend? I guess this relationship is a little more difficult to untangle when you have tax hikes, cuts in government expenditures, and an uncertain demographic future. The liquidity increase was a jolt but does not change the underlying structure. The economy needs for therapy.
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